Replenishment and reversal of provisions of credit institutions in Vietnam
Please ask: According to the regulations on risk management of credit institutions. What are regulations on replenishment and reversal of provisions of credit institutions in Vietnam?
Replenishment and reversal of provisions of credit institutions in Vietnam specified in Article 14 of Circular 11/2021/TT-NHNN, specifically as follows:
1. In case the residual amounts of specific provisions and general provisions in the previous accounting period is smaller than the amounts to be set aside for the specific provisions and general provisions in the provision accounting period, credit institutions or foreign bank branches must set aside additional amounts to replenish the deficit.
2. In case the residual amounts of specific provisions and general provisions in the previous accounting period is greater than the amounts to be set aside for the specific provisions and general provisions in the provision accounting period, credit institutions or foreign bank branches must make a reversal of the surplus.
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